Transcript Document
Building the payments
infrastructure
Anne L Cobb
President
Visa International CEMEA
What is Visa?
A global non-profit making association
Owned by 21,000 banks worldwide
1.25 billion payment cards worldwide
$2.7 trillion cardholder in sales volume
Efficient payment is our business
A brand new IP-based access network
Replacing disparate protocols and standards with a
consistent network technology
Guaranteeing new levels of flexibility, reliability and
bandwidth
– Lower operational complexity
– Higher quality of service
– Greater resilience
Opportunity for new processing services
Providing low cost transactions
Local infrastructure limitations will require creative
solutions
Delivering the e-commerce promise
A substantial, rapidly growing market
Strategically important to Visa – with benefits for all
participants
Convenience, security and predictability are being
addressed:
– Thorough merchant monitoring programmes
– A solution is in sight for “cardholder authentication”
3D Secure technology
Backed by all international payment schemes
Implementation under way in all Visa regions
Economic importance of banking the unbanked
$40,000
Norway
GDP Per Capita ($US)
Switzerland
Denmark
$30,000
Ireland
UAE
$20,000
Canada
UK
Germany
France
Italy
Spain
Saudi Arabia
$10,000
Hungary
Poland
Egypt
Czech Republic
Russia
$0
0
Greece
20
40
60
80
Percent Banked Across Countries
100
Accounting for the costs of cash
Cash is never free
An electronic payment system can be ¼ the cost of an
equivalent cash/paper-based system
Electronic systems liberate aggregate cost savings of
at least 1% of GDP
Cash/paper based systems have variable costs – per
payment costs are high and stay high
Electronic systems have fixed costs – per payment
costs reduce with volume
Yielding the economic benefits
Globally, a 10% shift in electronic payments typically
creates a direct 0.5% increase in consumer spending
Across 6 Central and Eastern European countries, a
shift in card share of 10% to 50% would lead to:
– Additional consumer spending of $1.5bn to $5.4bn
– Additional GDP of $1.7bn to $8.2bn
Summing up….
An efficient electronic payments infrastructure is a prerequisite for economic development
Essential for expanded economic trade
Brings people into the banking system
Liberates capital and liquidity
Convenience, security and efficiency for buyers and
sellers
Once it is in place the momentum builds
Thank you